Income (loss) from continuing
operations before
provision for income taxes

$

(66

)

$

168

$

934

$

2,068

$

2,447

$

952

Less:

Income (loss) from equity investees

(9

)

(6

)

93

207

186

80

Add:

Interest expensed

55

84

130

139

135

31

Capitalized interest amortized or expensed

11

14

9

14

15

2

Portion of rents representative of the interest factor

33

37

35

35

34

8

Distributions from equity investees

2

13

17

101

138

29

Income as adjusted

$

44

(1)

$

322

$

1,032

$

2,150

$

2,583

$

942

Fixed charges:

Interest expensed

$

55

$

84

$

130

$

139

$

135

$

31

Capitalized interest

2

3









Portion of rents representative of the interest factor

33

37

35

35

34

8

Fixed
charges

$

90

$

124

$

165

$

174

$

169

$

39

Ratio of consolidated
earnings to fixed charges

0.49

(1)

2.59

6.25

12.36

15.28

24.15

(1)For the year ended December 31, 2001, consolidated
earnings were not sufficient to cover fixed charges by $46 million.
Consolidated earnings for the period, as defined, reflect a $635 million loss
before income taxes from the September 11 attack in the United States and net
surety bond losses of $220 million before income taxes arising from the
bankruptcy of Enron Corp.